Prices in Mozambican Agriculture

Abstract

This article is concerned with the effectiveness and impact of agricultural price policy in Mozambique since Independence in 1975. Existing information on price-setting and inflation is up-dated and reviewed, and the implications of a recently compiled aggregate consumer price index are investigated. External pressure and increasing internal difficulties have induced a re-orientation of economic policies with price and market liberalization in focus. The scope for increasing agricultural production through price reform alone is limited, but Government intervention in agricultural markets in Mozambique could nevertheless be improved. Different types of interventions undertaken and proposed are therefore considered before the article is concluded.